Financial Comparison: SLM (SLM) & Enova International (ENVA)

SLM (NASDAQ: SLM) and Enova International (NYSE:ENVA) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their risk, analyst recommendations, institutional ownership, valuation, profitability, earnings and dividends.

Earnings & Valuation

This table compares SLM and Enova International’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
SLM $1.15 billion 4.37 $250.32 million $0.67 17.30
Enova International $745.57 million 0.71 $34.60 million $0.92 17.12

SLM has higher revenue and earnings than Enova International. Enova International is trading at a lower price-to-earnings ratio than SLM, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

SLM has a beta of 1.33, indicating that its share price is 33% more volatile than the S&P 500. Comparatively, Enova International has a beta of 3.45, indicating that its share price is 245% more volatile than the S&P 500.

Institutional and Insider Ownership

99.3% of SLM shares are held by institutional investors. Comparatively, 97.3% of Enova International shares are held by institutional investors. 0.6% of SLM shares are held by insiders. Comparatively, 1.6% of Enova International shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares SLM and Enova International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
SLM 22.95% 16.63% 1.62%
Enova International -1.55% -4.92% -1.26%

Analyst Ratings

This is a summary of current recommendations for SLM and Enova International, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SLM 1 1 6 0 2.63
Enova International 0 1 3 0 2.75

SLM currently has a consensus target price of $13.50, suggesting a potential upside of 16.48%. Enova International has a consensus target price of $16.67, suggesting a potential upside of 5.82%. Given SLM’s higher probable upside, analysts plainly believe SLM is more favorable than Enova International.

Summary

SLM beats Enova International on 10 of the 14 factors compared between the two stocks.

About SLM

SLM Corporation (Sallie Mae) is the nation’s saving, planning, and paying for college company. Sallie Mae offers products, which promote personal finance including private education loans, Upromise rewards, scholarship search, college financial planning tools, insurance, and online retail banking.

About Enova International

Enova International, Inc. is a technology and analytics company. The Company provides online financial services. As of December 31, 2016, the Company offered or arranged loans to consumers in 33 states in the United States and in the United Kingdom and Brazil. As of December 31, 2016, it also offered financing to small businesses in all 50 states and Washington D.C. in the United States. The Company provides online financial services to non-prime credit consumers and small businesses in the United States, United Kingdom, and Brazil. Its customers include small businesses, which have bank accounts but use alternative financial services because of their limited access to more traditional credit from banks, credit card companies and other lenders. The Company’s financing products include short-term loans, line of credit accounts, installment loans and receivables purchase agreements (RPAs).

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